One of the more debated topics South Dakota voters are deciding on in November is Referred Law 21.
The law regulating pipelines was originally crafted in response to a major carbon sequestration project backed by Summit Carbon Solutions.
During the 2024 legislative session, Senate Bill 201 was passed by the Legislature and signed into law by Gov. Kristi Noem. Backers called the bill “The Landowner Bill of Rights.”
The bill offers counties $1 per linear-foot of pipeline placed. The county then would spend the income to help subsidize landowner taxes.
The bill also provides setback language which controls the distance in which the company can put the pipeline in relation to landowner property. It limits local governments’ abilities to make their own setback laws.
Enough signatures were gathered, however, to stop the bill from going into effect July 1. Now, the citizens of South Dakota have a chance to decide through Referred Law 21 if the original pipeline bill generated by the legislature passes into law.
Jim Eschenbaum is the Chairman of the South Dakota Property Rights and Local Control Alliances. He spoke against the bill at the Vote South Dakota town hall, saying he wants people to focus on small local farmers.
“This law was a sellout to Summit Carbon Solutions. Outright sellout of the South Dakota citizens to Summit Carbon Solutions. The only thing that they preach is, 'look at all the money this is going to bring in.' Let’s go to their revenue part of business model. They produce nothing of value, they produce no public service. They are going to collect their money totally on the taxpayers backs with federal tax credits,” said Eschenbaum.
Eschenbaum said the pipelines should be more concerned with offering safety. He argued that there are no new protections South Dakota citizens don’t already enjoy added to the law.
One of the largest issues opponents have with the carbon capture and sequestration pipeline project are companies’ attempts to utilize eminent domain.
Walt Bones is a member of the board of directors for Protect South Dakota’s Ag Future. The organization said losing the carbon pipeline project would damage the state’s agricultural economy and cost the state billions of dollars. He supports a yes vote on the law.
Bones said the law is not about eminent domain.
“There is nothing about eminent domain in this bill. In fact, eminent domain is out of my hands, it’s out of Jim’s hands, in fact it was in the state Supreme Court, and it just most recently got deferred back into the circuit courts for some more research, some more input. So, as far as his point, there is no wording in Senate Bill 201, now Referred Law 21, that diminishes the counties rights in anyway. Initially, frankly there was, but to get through the legislature that was all stricken out,” said Bones.
Bones argued that despite some carbon pipeline companies not doing things correctly the first time, they now will be providing much needed income to counties across the state.
Referred law 21 will be among the ballot initiatives South Dakotans will consider this November voting season.
